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Kuvimba Confidence in Lithium Project Amid Price Dip, Deal with Chinese Firms Near Completion

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Kuvimba Mining House is set to finalize an agreement this month with two prominent Chinese companies, continuing its commitment to a $270 million lithium project despite recent price downturns, according to CEO Trevor Barnard.

The company remains optimistic that lithium prices will recover as electric vehicle (EV) demand in China remains strong, coupled with the closure of some lithium mines.

Lithium prices have plummeted by over 80% since their peak in November 2022, driven by an oversupply of the metal and slower-than-anticipated growth in EV sales. However, analysts predict a stabilization in prices this year, driven by robust EV sales and mine shutdowns, which should help bring balance to the market. Barnard remains hopeful that prices will rebound, though he cautioned that they are unlikely to return to the record highs seen in 2022, a period he describes as a “bubble” fueled by overblown demand projections.

Zimbabwe, currently Africa’s largest producer of lithium, has attracted significant investment in the sector, with over $1 billion flowing into lithium projects since 2021, much of it from Chinese battery metal companies. In 2024, it was reported that Zhejiang Huayou Cobalt and Tsingshan were poised to partner with Kuvimba to develop the Sandawana mine. Huayou had acquired Prospect Lithium in 2022, while Tsingshan is involved in the development of the Dinson steel plant and the Gwanda Lithium mine.

Barnard highlighted the project’s promise, stating that after a thorough review, Kuvimba determined Sandawana’s resource quality and scale were compelling enough to move forward with plans to establish a 600,000 metric ton per year lithium concentrator at the mine.

Chinese firms such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have been particularly active in acquiring lithium assets in Zimbabwe, positioning the country to strengthen its role in the global battery metal supply chain.

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